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Video Advertising Surges, Now 25% of U.S. Digital Ad Spend

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Digital video advertising has seen huge growth in 2018, and will increase by almost 30 percent to a total of $27.8 billion this year. According to research company eMarketer, it will make up 25 percent of all digital ad spending in the U.S.

Diving into the numbers, eMarketer finds that Facebook (including Instagram) will take 24.5 percent of that video ad budget, and is the country's largest video ad platform, taking in $6.8 billion from video this year. It also takes 87 percent of all U.S. video ad spending on social networks. Look for this success to continue with double-digit growth through 2020.

Facebook and Instagram are succeeding with in-feed video ads, notes eMarketer principal analyst Debra Aho Williamson. These are video ads that appear between items in a news or social feed. She predicts the company will find success with in-stream video ads in Facebook Watch, which appear within the video player and feel like traditional TV commercials.

Surprisingly, YouTube is well behind Facebook in video ad dollars, taking in $3.4 billion in the U.S. this year. It's still seeing strong growth, as that number is up 17.1 percent from 2017.

Twitter will take in $633 million from video ads in 2018, while Snapchat will earn $397 million. Both companies show double-digit gains.

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